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housing crisis

Education

Realtor's raw, emotional take on why nobody can afford a house is beautifully devastating

"Corporations should not be allowed to buy single family dwellings."

@zacharyloft/TikTok

Realtor Zachary Loft discusses why it's impossible for young people to afford a home right now.

We’ve heard plenty of people lament the fading American Dream of being able to buy a home. But hearing that lamentation from the very people who sell that dream…it hits a bit different.

Delaware-based realtor and realty coach Zachary Loft (@zacharyloft) has had a very successful, very profitable career. In a recent TikTok video, he shared that he’s been able to make upwards of $400,000 in one year, essentially erasing any worries about money.

But over the past six or so years, Loft said that, along with his success, he had a “VIP front row seat to watching the American Dream get sifted away from the working class,” causing him to become disillusioned and fill with despair.

Getting passionate, Loft recalled how he once encouraged and educated people on making that potentially life-changing investment of a first-time home. However, in his own research, what he continued to find were legislative measures to “undo” the average person’s ability to attain this goal.

He cited the removal of 1933’s The Glass-Steagall Act, which prohibited commercial banks to merge with investment banks and insurance companies, as well as the “shifting tax brackets” brought on by the Reagan administration, the “skyrocketing” rise of private equity and “Wallstreet landlords.”

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“I look at the infestation of institutional investors buying up and banking on asset inflation that is housing, that is shelter, keeping normal everyday people out of having a roof in exchange for billionaires having bigger accounts,” he said, blaming their “egos” and a “lust for power.”

This greed, Loft argues, lines affluent pockets all while "draining" the income opportunities for the working, middle class. All of these revelations made him “not want to sell homes anymore” by 2022.

“I think I speak for a lot of people in their mid-20s right now that feel like ‘what if I do the work and the opportunity's just not there?” Loft said quietly.

Now, even more than selling homes, he wants “change.” And this call to action stuck a chord with many, many viewers.

“We’re so close to massive class consciousness. Keep pressing,” one person urged.

Another said, “Keep getting angry and loud at the systems. We gotta change it.”

“Dude, you have me in tears here” commented a third. “Your soul level conviction, altruism, and empathy touched me. You really, truly care. You are an incredible person. Please keep this up.”

Yet another hailed Loft's words as "slam poetry," saying it was "beautiful, even if every awful, devastating part is true."

While there is certainly truth to Loft’s findings, an article from journalist Derek Thompson suggests the well known housing crisis has less to do with private equity firms and more about the lack of new single family developments due to over-regulation and restrictive zoning laws that aren't set up to meet increasing populations.

To that end, several states are trying to make single family housing development easier. California’s governor Gavin Newsom recently signed into a law some groundbreaking reforms to boost housing production and infrastructure statewide and improve affordability. Similarly, cities like Minneapolis, Arlington, and Gainesville have also reformed and/or eliminated their single-family zoning laws.

There has also been an uptick in Real Estate Investment Trusts (REITs) that focus on investing in, developing, and managing properties that are specifically designed to serve low- and middle-income families. As explained by Sortis Capital, these REITs partner with governments, nonprofits, and private developers to provide housing at below-market rents, filling a gap that traditional market-rate housing developers cannot. Heavy hitters include Community Development Trust (CDT), Housing Partnership Equity Trust (HPET), and Reven Housing REIT.

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That’s not to say this isn’t still a very real and prevalent issue, nor that we will make much headway without addressing the overarching wealth and power imbalance in our country (i.e., billionaires). But, as many pointed out, true change happens when we speak up, together.

Education

Real estate broker breaks down why middle class millennials and Gen Z can't afford housing

"It's fine...we just have to stop getting our fancy coffees and we can afford it."

Real estate broker explains why Millennials can't buy houses

There's a housing crisis in America. It's not that there aren't houses available. Thousands of houses and apartments sit empty across the country, but the price for housing has reached levels that seem unsustainable for the middle class and those classified as working poor. Some might argue that middle class is now the working poor, though their yearly salary says they should be able to fair just fine.

Unfortunately, what used to be considered a decent salary for a middle class family to live comfortably is now barely enough to scrape by given the cost of housing. But some people from the boomer generation still struggle to understand why millennials and Gen Z can't afford housing.

Freddie Smith, a real estate broker, took to social media to explain why younger generations are struggling to purchase a home when their parents didn't. The real estate finance lesson was prompted when a baby boomer pointed out, "Don't forget we had 13% interest rates in the 80s."


A 13% interest rate seems like insanity upon first glance, but after Smith breaks it down, it doesn't look so bad. "I wish we had 13% interest rates if we had your home prices," the broker says before breaking things down.

Smith quickly starts speaking in numbers, revealing that in 1980 even with their yearly salary being only $22K with the 13% interest rate, their monthly payment only equaled to 26% of their monthly income. If millennials had the same circumstances, their median yearly salary would be $80k, their median price of a home $170K, and with a 13% interest rate the monthly payment would be $1,790–only 26% of their monthly income.

But that's not the reality that Millennials and Gen Z live in. While the median salary is $80k, the median price of a home is $419K, and while the interest rate in 2024 is 7%, with the housing price so high it would make the monthly payment 42% of their monthly income.

Smith wraps up the video saying, "And here's the kicker. Someone making $80K in most cases can't even qualify for this."


@fmsmith319

1980 vs 2024 home prices and interest rates


That certainly put things in perspective for people. The video was flooded with comments from exhausted and frustrated millennials.

"Oh and the wives got to stay home and care for the kids now we pay another $1600 a month for daycare for us both to work," one person laments.

"Imagine if we had 140K homes with 13% rates. The gaslighting from them is WILD. I’d take 14% rates if the average home was only 140K," another says.

"It’s fine.. we just have to stop getting our fancy coffees and we can afford it," someone writes.

"We’re facing a 5K payment with 10% down on the average home. Same house cost 3K a month in rent. So we’re renting indefinitely at the moment," a commenter shares.

But this isn't just an issue in America. There were people outside of the U.S. sharing their astronomical cost of an average family home.

"Same here in Oslo, Norway. By dad bought his house for $22,500 in 1972. He’s selling it now for $1.75 million. And of course he says just this. 'You just have to spend less and work more.' Lol," someone shares.

"It’s worse in Australia. Average salary $80k average house price $1m," another writes.

While Smith doesn't offer a solution, his breakdown may help older generations understand why their children and grandchildren aren't buying homes. One can only hope housing prices go down or wages significantly increase so the middle class can afford a little more than their basic needs on top of being able to buy a home.

Image collage via Wikicommons

San Francisco Mayor London Breed announced a new plan to combat homelessness amongst the transgender community

Home is somewhere to lay your head down at night without worry that someone will steal all of your worldly possessions. Home is where people start families and make lifelong memories. Having a place to go home to every night is safety. Safety from the elements and safety from other people who may mean you harm.

And there's almost nothing more quintessentially American than owning a home. Yet, the reality is America does poorly with keeping people housed. Homelessness is a growing problem across the country, especially with the lack of affordable housing and wages that don’t always meet the minimum basic needs.

And the rates of homelessness among transgender people are higher than average with 8% of trans adults experiencing homelessness compared to 1% of cisgender straight adults, according to UCLA School of Law Williams Institute.

To help remedy the problem in her city, the mayor of San Francisco, London Breed, announced a plan to allocate $6.5 million toward an initiative to end homelessness of transgender people in the city.


The multiyear plan would see an end to trans homelessness by 2027. Transgender people face more discrimination, including when securing housing, than their cisgender counterparts. While this is unfair, it’s not particularly surprising when you consider the legislation around what bathrooms trans people can use. It’s not a far reach to assume they likely have difficulty finding a homeless shelter that will accept them based on their identified gender. Safety would also be a large component even if there was no discrimination in sheltering trans individuals.

Photo by Jon Tyson on Unsplash

"Transgender, nonbinary, and gender nonconforming San Franciscans are 18 times more likely to experience homelessness compared to the general population, and we know that the rates are even higher for our minority trans communities," Breed said in a statement. "With one of the largest TGNC populations in the country, we not only must ensure that all San Franciscans have access to housing and essential resources through continued investments, but we can show the country that we continue to be a leader on supporting and protecting our trans communities."

America has not been kind to gender nonconforming people, especially people that identify as trans. It almost seems like it's acceptable to treat transgender people poorly. It needs to stop. If we are silent when injustice is present, our silence is the loudest voice in the room.

Photo by Delia Giandeini on Unsplash

Breed’s proposed plan would include at least 150 long-term housing subsidies through the city's already established Flexible Housing Subsidy Pool program. It would also fund short-term rental subsidies, flexible financial assistance and support to build the capacity of nonprofits serving transgender and gender nonconforming people. The budget plan is extensive and will include planning for housing for LGBTQ youth who are at a transitional age.

Housing should not be reserved for those who society deems appropriate based on lack of knowledge and biases. Transgender people who are experiencing homelessness deserve a place to call home just as much as the next person. It’s not clear if this announcement was timed just in time for Pride Month, but it sure feels fitting.

Magnific Eye / Unsplash

Los Angeles is experiencing a homeless epidemic that was years in the making.

Over the past six years, the unhoused population in the city has risen 75 percent. The city's lack of homeless shelters and affordable housing has forced many who can't afford L.A.'s sky-high rents to live on the streets.

According to LAist, since 2000, renter incomes have decreased by 3 percent while rents have gone up 32 percent.

While the city has launched a $100 million-per-year program to help the problem, rapper, entrepreneur, and actor Jaden Smith has found his own way of responding to the crisis: love.


On his 21st birthday, Smith launched the I Love You Restaurant pop-up truck. The truck hands out healthy, vegan meals to unhoused people absolutely free. Smith himself follows a vegan diet.

A 3-year-old gave her mom a 25-word master class on what forgiveness really means.

"@ILoveYouRestaurant Is A Movement That Is All About Giving People What They Deserve, Healthy, Vegan Food For Free," Smith wrote on Instagram. "Today We Launched Our First One Day Food Truck Pop-Up in Downtown LA."

The food bowls given out by the I Love You Restaurant feature dark leafy greens, sweet potato, black beans, and grains.

Smith hasn't announced the next time the truck will pop up in the L.A. area, but it'll be back soon. "Keep A Look Out Because This Is The First Of Many," he wrote on Instagram.

Kanye West is building low-income houses that will look like they're straight out of 'Star Wars.'

This isn't Smith's first foray into charitable giving. Last year, his eco-friendly water company, JUST Water, partnered with a local church in Flint, Michigan to help with the water crisis. He also donated over 10,000 bottles of JustWater to local schools.

Just Water is a sustainably sourced water brand that uses non-plastic containers that create less waste.

"This has been one of the most rewarding and educational experiences for me personally," Smith said in a statement. "Working together with people in the community experiencing the problems and design(ing) something to help them has been a journey I will never forget. We are planning to deploy more water boxes in Flint and other communities facing similar challenges."